The unveiling of Amazon's delivery "drones" on 60 Minutes has left heads spinning. If the drones can one day do what they are claimed capable of, it will mean delivery of goods ordered online in 30 minutes or under. If it were available now, viewers of that 60 minute special could have had something ordered and delivered to their doorstep before the program was over. Maybe even parts for their own delivery drone. The sight of drones dropping packages off as people walk their dogs conjures up images of the Jetson's - the future is here.

But what does that future world look like? Because like any ecosystem, the introduction of a new organism means a ripple of changes, and for brick and mortar retailers, these drones might take on the shape of a predator.

We've already seen the changes online services are having on retailers. Big Box models are downsizing, more emphasis is being placed on perishable goods, banks are closing branches due to the spread of online banking. However, brick and mortal retailers still have a key advantage - if a consumer wants a good NOW, the only option is to visit a store. And since many consumers impulse buy, just being in a store surrounded by other products could lead to more sales. In other words, the balance in the battle between lazily staying at home, ordering online but having to wait anywhere from a day to a week to get the product versus going out of the house, maybe into traffic and retail lines but getting the product now may fundamentally shift. Customers could be lazy and get their goods.

Continue Reading for Free

Register and gain access to:

  • Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Jonathan Hipp

Jonathan Hipp began his career in real estate over 25 years ago. In his early years as a broker, he ventured into the net lease industry and quickly began leading the US net lease market, closing over $3 billion in transactions. In 2005, Jon founded Calkain Companies, a company focused solely on net lease investment services. As President and CEO, he has been instrumental in building the firm into one of the leading Net Lease real estate companies, transacting over $12 billion of net lease deal volume over the past 13 years. He has expanded Calkain’s services to include brokerage, advisory, asset management, capital markets, and industry research. He has become a well-known resource, panelist, and speaker at various Net Lease and Industry conferences and is a regular contributor to GlobeSt.com on real estate trends. In June 2015, Jon’s passion for the real estate business was again recognized as he was nominated for the Top Real Estate Player in the DC area by SmartCEO magazine.